In 2016, we continued to work with our suppliers on lifecycle assessments to reduce the environmental impact of our products. In particular, we will be looking at the overall impact of cocoa, a key ingredient for our snacks and treats businesses. Furthermore, we will partner with our small and medium suppliers to help them align with ISO 14001. This will include third-party packaging and ingredients suppliers. At the same time, we hope to sustain and build on our own ISO 14001 certifications.

2016 overview

Our environmental performance in 2016 was a mix of challenges and successes. We significantly improved our use of packaging and waste, while the energy efficiency and carbon intensity of our operations was constant. Legislative developments During the review period, we began preparing for unanticipated legislative changes in South Africa: • Department of Minerals and Energy – companies have to submit five-year energy reduction plans • Department of Environmental Affairs – notification that companies will need to submit a five-year pollution prevention plan for approval by the minister. While this regulation has not yet been legislated, we are proactively developing a draft plan given the proposed three-month window between promulgation and submission to the minister. This change in legislation will also require companies to submit annual progress reports on their approved plans.

Our environmental performance in 2015 reflected a mix of challenges and successes. We made significant improvements to our use of packaging and waste and the energy efficiency and carbon intensity of our operations remained constant. Unfortunately our water intensity increased marginally by 2% during the year. Our performance against our environmental targets is summarised below:

commitments for 2016

Our environmental performance in 2015 reflected a mix of challenges and successes. We made significant improvements to our use of packaging and waste and the energy efficiency and carbon intensity of our operations remained constant. Unfortunately our water intensity increased marginally by 2% during the year. Our performance against our environmental targets is summarized below: